My monthly electric bill is huge.. am thinking that it might be my furnace is not set properly? (true or not?) usually keep it around 68. Seems like its in an 'auto' mode (which might make sense), but since i have both the heat pump and an oil furnace (serving as aux heat), am thinking that i might be better served if the oil were being use more when it gets colder? (true or not?)
how do i determine and set the temp levels so that my aux heat will kick in if the outside temp falls below 40 degrees? According to one sheet of instructions i have on the unit, it appears that there are three ways to set the 'Balance Point Temperature'...(capacity, Economic, and Comfort)... how do i figure out what it is set and what is the best way for me to set it for both cost and comfort (I live in Maryland where we have mild winters...not the heavy cold weather that New England gets).
I believe that i have a thermostat similar to: http://www.docs.hvacpartners.com/idc/groups/public/documents/techlit/omtstat-1.pdf

Typically electric resistance heat draws three times the amount than a heat-pump be sure to not set the thermostat too high, its possible the sequential heater relays arent shutting off continually on without the blower causing super high electric bills

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If you have a dual fuel system - gas/heat pump the heat pump should lock out at around 41 degrees depending on what the outside lockout sensor is set at. It may be that both the heat pump and furnace could be running at the same time if the outside lockout isn't working or there could be a problem with the thermostat. Best bet would be to have a service tech check it out. However if you want to check it out here are the terminals Terminations: R,Y1,Y2,W2,E,G,O,B,L,C. W2, E and B are the heating terminals for 2nd stage heat and emergency heat. First stage heat, compressor Y1 with B (reversing valve on heat pump) energized together. 2nd stage W2 energized for gas or electric heat . No power to Y1 and B when W2 is energized if gas. E can be energized with Y1 and B if you have electric heat or if you switch over to emergency heat, E will be energized.

Hi Demetrio
Furnaces turn on and off based on what they're told by your thermostat. The thermostat, in turn, will control the furnace based on:

The temperature AT the thermostat.

What the internal heat sensor thinks the temperature of the air is.

So, if your idea of 68 degrees is what the thermostat thinks is 71 degrees (thermostat reads three degrees high), then when the air by the thermostat gets to about 65 degrees (by your account), it'll think it's 68 degrees and shut the furnace off.

Also, if the thermostat is, say, near a source of local heat, like a lamp, a big piece of electronics, a fireplace, or that place that you habitually set down your coffee, then the air right next to the thermostat may be warmer than the rest of the room, and fool it into thinking it's at it's target.

The sensor is usually inside the housing for the thermostat. If it hasn't been dusted in a while, then it can be hard for air to get inside to affect the sensor, though this would generally cause it to lag on readouts and run the temperature higher than you wanted.

If you have a digital readout, and the system is saying , hey, target is 68, and the readout gets to 66 and the system cuts off the furnace.... my only other guess is that the unit may have features that are trying to prevent overshoot - i.e. by the time the temp at the thermostat actually gets to 68, most of the room is more like 73. That'd depend on your particular thermostat. At that point, you may want to call customer service with the manufacturer and tell them the issue. There may be ways to adjust the unit to get behavior closer to what you seek.

Yes, if you are talking about a heat pump. It you have an electric furnace inside, the electric elements are for emergency heat. Otherwise, unless you switch it manually at the thermostat, the heatpump (outdoor unit) will run all year around. If you want to use your inside heater (electric heater) just switch your thermostat to "emergency heat" and it will turn on the electrical elements instead of the outdoor unit. This way will make your elec. bill higher tho. The heat pump is much more efficient. Hope this helps you , have good day

Since it's within 2 degrees of your setting it could be one of two things. Most furnaces run longer (pass your setting) to maintain the setting you made. Which really not a problem. However, your thermostat may need calibrating. To test this theory, place a regular wall thermometer next to your furnace's thermostat and see if the two temps match when the furnace cuts on and then when it cuts off.If the temps are both the same, the furnace thermostat is fine.

If you're turning it down to 68, because no one will be at home during the day, just set it 2 degrees cooler than 68 degrees. You will then wind up with 68 degrees.

Is this an electric or gass furnace - Eather of these can can have this problem its most recomendable that you call a seviceman .
in the case of electric furnace you may requier a new heat sequencer. And in the case of gass you may requier a new relay.

If you have it cleaned twice a year they should be able to find this problem. It is one of two thinkgs. There is a limit switch on the fan at the top (inducer) this may be weak and causing the inducer run frequently. The other is there is another limit switch it is a main limit on the fire wall it is also weak and that is why the main blower is running it is trying to cool that limit.

Most likely the cause is that the furnace is firing too hot. When a furnace is installed and set up, the manifold gas pressure and fan speed has to be set by the technician so that the temperature rise through the furnace is a maximum of 50 deg F (i.e. if air enters the furnace at 68 deg F it come out no hotter than 118). The target temperature rise on any gas furnace is anywhere between 30 and 50 deg F. If the furnace runs too hot, either the manifold gas pressure must be turned down or the fan speed must be turned up to keep in this range.